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Coinstar to sell its money transfer group to Sigue
August 25, 2010
Bellevue, Wash.-based Coinstar Inc. and Sigue Corporation announced the signing of a definitive agreement for Sigue to purchase Coinstar's money transfer business. The aggregate purchase price is expected to be $41.5 million, which will be subject to a post-closing net working capital adjustment. In addition, Coinstar will be financing a portion of the purchase price payable by Sigue under the definitive agreement through a promissory note. The closing of the transaction is expected next year, subject to certain closing conditions and required regulatory approvals.
"We believe that our global money transfer business should complement Sigue's already extensive network of money transfer agents in the United States and Latin America," said Paul Davis, CEO of Coinstar Inc. "In addition, the sale of the money transfer business allows Coinstar to direct its full efforts toward our automated retail strategy."
Sigue CEO Guillermo de la Vina said, "Following the closing of the transaction, Sigue will become one of the largest global money transfer companies with pay out locations in over 130 countries. This acquisition is complementary with our existing strategy and will allow us to better serve customers here in the U.S. and around the world." He continued, "We are very pleased to enter into this agreement with Coinstar, which will allow both companies to focus on our core competencies and strengths."
Coinstar filed a Current Report on Form 8-K that contains certain additional information regarding the transaction.
Coinstar announced financial results on July 29 that reflected the money transfer business as discontinued operations and provided 2010 third quarter and full year guidance for ongoing operations that did not include results related to the money transfer business.
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